Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Note 1: Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity ofRoyale Oaks House of Hope (the Corporation) under programs of the federal government for the year endedDecember 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion ofthe operations of the Corporation it is not intended to and does not present the financial position, changes in netassets, or cash flows of the Corporation.Note 2: Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. No federal financial awards were passed through tosubrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were 6486607.
Title: NOTE 4: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 232 MORTGA
Accounting Policies: Note 1: Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity ofRoyale Oaks House of Hope (the Corporation) under programs of the federal government for the year endedDecember 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion ofthe operations of the Corporation it is not intended to and does not present the financial position, changes in netassets, or cash flows of the Corporation.Note 2: Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. No federal financial awards were passed through tosubrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The HUD Section 232 Mortgage Insurance, listed subsequently, is administered directly by the Corporation, and thebalance and transactions relating to the mortgage loan are included in the Corporations financial statements. Themortgage loan outstanding at the beginning of the year is included in the federal expenditures presented in theSchedule. The balance of the loan outstanding at December 31, 2022 consists of:Federal FinancialAssistanceListing Number Program NameOutstandingBalance14.129 Mortgage Insurance Nursing Homes,Intermediate Care Facilities, Board and CareHomes and Assisted Living Facilities$6,486,607